PeejayI posted on this recently when I finally exited this...

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garrye

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13/11/19

17:37

Post #: 41406485
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Originally posted by peejay2: ↑

I see that CDM has fallen almost 4% today, presumably because the market has fallen overall, but I also presume that as ARQ has also fallen approx 10%, that it shows a lack of confidence in the management of CDM. I know that CDM is trading below NTA, and that ARQ only comprises approx 4% of the CDM portfolio. Given that I have been a long term holder, but as someone who is down almost 30% on their CDM investment, is there any real reason to trust the long term judgement skills of CDM and being able to depend on them to follow their staging in and out process, especially when it doesn’t appear to have been followed in the case of ARQ ?
All good and fine to say that CDM is trading at a significant discount to NTA and that closing the discount will bring an improvement to the SP, but is there any reason after the ARQ debacle to say “this time it will be different !”
After all, one must have confidence in those you trust to manage your money....... and at the moment, I have a severe lack of trust in the Judgement, reliability and integrity (not to mention the longer term track record) of CDM managers.
Have I got the Tiger by the tail ? Or am I missing something ?

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Peejay
I posted on this recently when I finally exited this stock.
The trend has been down since 2016 and there has been several years of severe under performance.
I would love to be able to say that I was wrong but this company is not making widgets.Market conditions , competition, economic conditions or other headwinds which might effect another company do not apply here.

Performance is dependent entirely on the skills of management stock picking

Earnings have been declining since 2013

What is the value of an LIC which loses money and will potentially stop paying dividends.at some point in the future based on current trends with no immediate talk of winding up the fund to recover shareholder value.

Just my thoughts but I have voted with my feet leaving behind a huge percentage capital loss.

Or on the other hand you could say that this will be the year that 8 consecutive years of under performance will be turned around. Maybe Karl will have an epiphany ( a moment of sudden and great revelation or realization.) and all will be well.

I choose not to put my faith in the latter.

CDM Price at posting: 75.0¢ Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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